Hidrovias do Brasil (HBSA3) Q2 2025 earnings summary

Executive summary

• Achieved record results in 2Q25, with net operating revenue of R$690 million (+27% YoY), recurring adjusted EBITDA of R$348 million (+39% YoY), and net profit of R$81 million, reversing a loss in 2Q24.

• Strong operational performance driven by improved navigability in the South Corridor (iron ore throughput up 65% YoY) and positive tariff adjustments in the North Corridor.

• Completion of a R$1.2 billion capital increase, with R$700 million cash inflow in 2Q25, consolidating Ultrapar's control and strengthening the capital structure.

• Liability management included partial repurchase of 2031 Bond, reducing foreign exchange exposure from 65% to 38%.

• Strategic review underway to prioritize high-impact projects, with capital discipline and productivity gains as key management priorities.

Financial highlights

• Net operating revenue: R$690 million in 2Q25 (+27% YoY, +24% QoQ); 1H25: R$1,245 million (+25% YoY).

• Recurring adjusted EBITDA: R$348 million in 2Q25 (+39% YoY, +36% QoQ); margin at 50% (+4 p.p. YoY).

• Net profit: R$81 million in 2Q25 (vs. net loss of R$63 million in 2Q24); 1H25 net profit R$104 million (vs. loss of R$132 million in 1H24).

• Cash generation from operations: R$307 million in 2Q25 (+79% YoY).

• Investments: R$91 million in 2Q25, mainly in vessel maintenance and North Corridor expansion.

Outlook and guidance

• Management targets double-digit ROIC in the medium term, focusing on asset utilization, cost reduction, and productivity.

• Expectation for continued strong results in Q3, assuming normalized navigation and sustained tariff adjustments.

• Strengthened capital structure and reduced leverage (4.0x vs. 5.7x YoY) position the company for further strategic investments.

• Guidance to maintain CAPEX under control, prioritize maintenance, and further reduce leverage.

• Ongoing sale process for Coastal Navigation operation, classified as discontinued.